In my last article I reviewed the basic workings of the new Home Renovation Tax Credit.

Recall, the HRTC is a non-refundable tax credit based on eligible expenditures for work performed or goods acquired after January 27, 2009 and before February 1, 2010.

The HRTC is only available for “eligible expenses” more than $1,000 and less than $10,000.

An eligible expenditure must be of an enduring nature and includes the cost of labour, materials, fixtures, permits and professional services including taxes applied to these costs. Not surprisingly, CRA has been receiving enquiries regarding eligible expenses since the day this provision was first announced.

Landscaping costs and landscape design will qualify. This includes new sod, perennial shrubs and flowers, trees, large rocks, permanent garden lighting, permanent water fountains, permanent ponds, permanent irrigations systems, permanent garden ornaments and retaining walls. The operative word here is “permanent” – basically, if you can take it with you when you move it doesn’t qualify. Regular lawn maintenance, annual flowers and so on will not pass the test.

Planting a tree is okay, but tree removal on its own does not qualify unless the removal relates to a renovation project that is of an enduring nature and integral to the dwelling. If a tree is removed as part of a home expansion then the costs of removal will qualify for the HRTC.

Fixed air conditioning, heat pumps and furnaces qualify whereas portable units do not. Once again, if the item is portable, it will not qualify.

Roof repairs and replacement including gutters, downpipes, soffits and facia can be added to the list. Windows, doors, garage doors, siding, brickwork and home security systems excluding monitoring are also fine. Custom draperies and window coverings such as blinds, shutters and shades are surprisingly eligible.

The key is the items must be “custom”.

If you’re on a “go green” kick, solar photovoltaic arrays (solar panels) can be added to the list.

If leisure is your thing, you can construct an outdoor sauna building and invite your fellow taxpayers to help out with the cost. As long as the sauna is a permanent installation on the land that forms part of an eligible dwelling, you’re good to go. This is true for hot tubs, too provided they are not portable. Yes, a hot tub will qualify, as long as it is permanently positioned in place and hard wired into the homeowner’s electrical panel.

Still on the leisure theme, replacing the liner to your backyard pool can also be added to the list.

Repairing, replacing or resurfacing a driveway and upgrading or replacing a septic tank is a qualifying expenditure.

Recall from my last article that an eligible dwelling can include a cottage. If your cottage is located on waterfront, a dock replacement will qualify for the HRTC provided it is attached to land within an adjoining one-half hectare of an eligible dwelling.

For the do-it-yourself readers, there is no problem doing any eligible HRTC work yourself. However, you cannot claim the value of your labour. There are many fairly obvious reasons for this not the least of which is that, under common law, a person cannot contract with oneself.

Finally, don’t bother trying to claim eligible expenses incurred outside of the eligible period starting January 28, 2009 and ending January 31, 2010. CRA is taking a “letter of the law” approach to this so make sure your expense is incurred during this time frame.

The HRTC is in its infancy and CRA is facing a barrage of questions. No doubt there will be some interesting questions and equally interesting answers. I expect to revisit this subject before the expenditure deadline passes.

• Jim Maroney is a chartered accountant with Meyers Norris Penny in Maple Ridge.